Who Should Consider Renting Instead of Buying in Manila?

Last Updated: April 22, 2024By
Who Should Consider Renting Instead of Buying in Manila?

In Manila, the real estate market is not just a place for homeownership; it’s also a fertile ground for people who wish to rent properties. With a dense population and a growing number of both locals and expatriates looking for suitable living spaces, the rental market in Manila presents a compelling opportunity for potential property investors. Here’s why and who should consider renting instead of buying, underlining the beneficial perspective for those thinking about purchasing property to rent it out.

Economic Viability and Flexibility

For many individuals, especially young professionals, renting in Manila is a more economically viable and flexible option than buying. The financial commitment required to purchase property can be considerable. High down payments, property taxes, maintenance costs, and homeowners association fees can add up, making renting a more attractive option for those who are not yet ready to settle permanently or who prefer not to commit a large sum of money upfront.

This scenario presents an excellent opportunity for investors. By purchasing properties to rent out, investors can tap into the demand for flexible, less burdensome living arrangements. Tenants benefit from not being tied down by long-term financial commitments, while landlords enjoy a steady stream of rental income.

High Demand for Rental Units

Manila’s population is booming, and with it comes an increased demand for housing. The city is a hub for both local and international businesses, drawing a workforce from across the Philippines and around the world. Moreover, the presence of numerous educational institutions attracts students who often look for rental accommodations.

For investors, this means a continual demand for apartments, condos, and even houses. The transient nature of students and professionals means that short-term leases, which typically command higher rental rates, are commonplace. Property owners who offer well-maintained, strategically located, and competitively priced units will find no shortage of interested renters.

Real Estate Appreciation

Over time, real estate in major cities like Manila tends to appreciate. This appreciation is driven by ongoing development and the finite availability of land, which boosts the value of existing properties. Investors benefit not only from rental income but also from the increased value of their property over time. This dual-income stream enhances the attractiveness of buying to rent as an investment strategy.

Market for Expatriates

Manila’s expanding economy draws a considerable number of expatriates. These individuals often prefer renting over buying, primarily because of the non-permanent nature of their stay or the legal complexities involved in foreigners owning land in the Philippines. Properties that cater to the tastes and standards expected by expatriates can fetch higher rental prices, making them lucrative investments.

Investors can capitalize on this by purchasing properties in areas popular among foreigners, such as Makati, Taguig, and parts of Manila that are close to international schools, business hubs, and lifestyle centers. Offering furnished, high-quality accommodations can further increase a property’s rental appeal.

Ease of Management

With advancements in property management services, owning and renting out property has become easier than ever. Property management companies can handle everything from marketing rental properties to managing day-to-day operations and maintenance. This makes property investment feasible even for those who may not have the time or inclination to manage the properties themselves.


The dynamics of Manila’s real estate market make it ripe for investors looking to purchase property for rental purposes. The high demand for flexible living options, coupled with the potential for real estate appreciation and a thriving expatriate market, creates a compelling case for buying to rent.

Investors are ideally placed to provide housing solutions that cater to renters’ needs while also benefiting financially from their investments. By understanding the market and strategically selecting properties, investors can generate significant income and contribute to addressing the housing demand in Manila. Therefore, those considering whether to rent or buy should think about the potential long-term benefits of becoming landlords in this vibrant city. Investing in Manila’s real estate is not just about owning property—it’s about generating opportunities, both for the investors themselves and for those they will ultimately house.

Who Should Consider Renting Instead of Buying in Manila?

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